Mexican economics follow the U

Mexican Economy Follows U.S. Economic Slump Growth has slowed considerably in early 2001 in response to the hard downturn in the US economy. The Gross Domestic Product (GDP) growth in 2001 is forecast to slow to 2%, from 6.9% in 2000. A rebound of growth in 2002 will depend on an upturn in the U.S. economy and continued conventional economic management. A tightening of monetary policy should enable inflation to fall to under 7% by the end of 2001. With hopes …

…first time since the beginning of NAFTA in 1994. In 2000 growth in the import bill outstripped export earnings growth, a trend that will continue into the next year. Were the peso to depreciate more suddenly than currently forecast, export earnings growth could trend higher than import growth, resulting in a downward revision of the forecast for the current-account deficit. If the peso depreciates as expected, the current-account deficit will widen in 2001 and will further expand in 2002.